Will It Automatically Become Part of Your Bankruptcy Estate?
You’ve been sick or injured, lost your job or gone through a divorce and it’s left you financially devastated. As a result, you sought relief under the American bankruptcy laws. Then a loved one died and left you a substantial amount of money. Will your inheritance automatically go into the bankruptcy estate and be used to pay your creditors? How can you protect it?
Your Right to Protect an Inheritance from Bankruptcy in Texas
A number of factors help determine what will happen to any inheritance you receive after filing for bankruptcy in Texas:
- The type of bankruptcy you file
- When you received the inheritance
- Whether you can declare the inheritance as exempt under Texas law
With a Chapter 13 reorganization, an inheritance will generally be considered a part of the bankruptcy estate, regardless of when you receive it (unless your bankruptcy is officially closed). You can, however, keep some or all of the inheritance by declaring it as exempt. Texas law allows an individual filing for bankruptcy to claim up to $50,000 in personal property and couples may exempt up to $100,000.
With a Chapter 7 filing, the inheritance will only be a part of the bankruptcy estate if you qualified for it before you filed or if you received it within 180 days of filing. Even so, if you have the personal property exemption, you can use it to keep the inheritance.
Contact an Experienced Rockwall, TX Bankruptcy Attorney
Let us help you take the right steps and make good decisions when filing for personal bankruptcy protection. At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.
